Global Fuel Markets Signal Supply Crunch Despite Calmer Oil Prices

Global gasoline and diesel markets are signaling a significant fuel supply crunch, even as crude oil prices remain relatively subdued. This suggests that the energy shock stemming from the Iran war may be far from over, despite improved flows through the Strait of Hormuz. Energy prices initially surged after the US-Israeli war on Iran led to the effective closure of the Strait of Hormuz, which historically carried about a fifth of global oil supplies.